Sunday 21 July 2013

The Impact of Unemployment on Crime In Benue State Metropolis




CHAPR ONE
INTRODUCTION
1.1            Background to the Study
In the recent past centuries, Benue state was created in February 1976, when Benue-Plateau State was separated into Benue and Plateau states by the Murtala-Obasanjo administration. As time pass by, and as the population increase they was a need to create more Local Governments which brought it to 23 Local Government present in Benue State.
Benue state is acclaimed to be the nation’s food basket because of its rich and diverse agricultural endowments which include yam, rice, beans, cassava, potatoes, soybeans, sorghum, millet and coco yam. Yet, with a very high rate of unemployment.
The state produces over 70% of Nigeria's Soya-beans and is home to one of the longest river systems in the country - River Benue, which has the potential for viable fishing and tourism industries complete with festivals similar to the one in Argungu. The river has the potential to generate electricity, to support dry season farming through irrigation and improved transportation through inland waterways. There are also proven reserves of solid minerals like Limestone, Gypsum, Anhydride, Kaolin, Salt, Lead and Zinc, Clay, Coal, Calcite, Gemstones and Magnetite. The Benue Basin has proven quantities of natural gas and there is the likelihood of crude oil as well. The state has many tourism assets like Ushongo Hills, Ikwe Holiday Resort, Enemabia Warm Springs, Dajo Pottery,mTiv Anger Weavers and many traditional festivals. The traditional music and dances of the state attract thousands of Nigerians and foreigners, with potentials for significant development.
It is in no doubt that despite all the available resource embedded in the state, the rate of unemployment is ragging the indigenes of the State. This is one of the driving forces behind the prevailing crime rate in the state. The youths are educated in diverse areas of discipline but have not job that would have keep them busy and not thinking of criminal activities such as cultism, arm robbery, rigging of election etc. In the quest for survival, the youth engage them self in alcoholism, smoking and drugs. According to JOHN O. AIYEDOGBON (2012)  A high level unemployment is one of the critical socio-economic problems facing Benue State. While the labour force grows, with an increasing proportion of youth, employment growth is inadequate to absorb labour market entrants. As a result, youth are especially affected by unemployment. Moreover, young people are more likely to be employed in jobs of low quality, underemployed, working long hours for low wages, engaged in dangerous work or receive only short term and/or informal employment arrangements.
 Unemployment and poverty are so inter-related that one can easily confuse one for the other. Although, it is possible for one to be employed and still poor, this is likely to be a case of underemployment. Thus, by unemployment, it includes those underemployed. Unemployment and underemployment reflect the failure to make use of an important factor of production, labour, for fostering economic growth in Benue State. Low returns to labour as well as high unemployment indicates poverty. Poverty makes it difficult to make investments in education and health that would increase a person‘s productivity.   Unemployment in Benue State is defined as the proportion of labour force that was available for work but did not get work to engage themselves. With a high portion of unemployed youth in Benue State, crime will becomes the other of the day as the youth are left jobless. Crime is said to be any unlawful activities that an individual engage himself toward the destruction of properties and distortion of people peace.
According to the NBS poverty profile 2012 based on data up to 2010, of the population of the North Central zone, 61.9% is relatively poor, 57.4% is absolutely poor, 38.6% is food poor - an irony indeed for a zone with such generous agricultural endowments. Benue’s poverty incidence is high at 36%, which means that more than one out of every three persons is poor: as opposed to one in seven for Lagos, and more than half - 58% in Yobe state. Benue’s unemployed population is a whopping 25.4 % or more than one in every four working age person is unemployed, as opposed to neighboring Plateau’s 14% and FCT’s 13%, and above the national average of 21.1%. Benue States has one of the highest incidences of HIV infections in the country, accounting for about one out of every eight infections nationally.
With the high rate of poverty brought about as a result of unemployment, The Bureau of statistics rank Benue as the 8th poorest state in Nigeria, with some of the highest unemployment rates. This rate has increase since then with the relative increase in the rate of HIV/AIDS in Benue State. Since Benue State is ranked one of the highest with HIV/AIDS, most companies that use HIV/AIDS test as a prerequisite for employment found most Benue indigence unqualified for the available positions. This has created impact of unemployment on crime in Benue State metropolis.
There is no precise definition of unemployment in the economic literature. To the layman, unemployment means a state of joblessness. Unemployment could be defined as the percentage out of the population of the labour force that is without job but is able and willing to work. According to Briggs (1973), unemployment is defined as the difference between the amount of labour employed at current wage levels and working conditions and the amount of labour not hired at these levels. However, Gbosi (1997), has defined unemployment as a situation in which people who are willing to work at the prevailing wage rate are unable to find jobs. Here emphasis is placed on willingness. Therefore, anybody who is not actively seeking paid employment should not be counted as part of the unemployed labour force. If we do so, we may be overestimating the official rate of unemployment. Within the Nigerian context, unemployment rate is defined as the percentage of persons among the labour force (15 – 65 years) excluding students and those medically unfit, available for work but did not work (Central Bank of Nigeria, 1993).
          Prior observations have shown that that, they is a very high impact of unemployment on crime in Benue State metropolis. This is one of the socio vices that lead to un-rest and post security challenges in the state. This need not be over emphasis as the fact shows that Benue State is a civil service state with a very high rate of employment.
1.2            Statement of the Problem   
One of the major challenges facing developing countries is that of unemployment relating to crime in Benue State.
The unemployment situation resulting to crime in Benue State has become critical and labour absorption problematic. The problem has increasingly come to be recognized as one of the serious socio-economic problems currently confronting Benue State economy. However, statistics showed that Benue State, compared to other State has the largest segment of youth unemployment.  Previous research on the issue of unemployment, we investigated the determinants of unemployment in Benue State. The study discovered that much of the ‘open’ unemployment observed in Benue State metropolis on crime is due to structural factors such as the nature of the educational system and its interface with the labor market (i.e., the mismatch problem), technological change, permanent shifts in the demand for goods and services and the skill content of the labor force. Cyclical factors such as the fluctuations in aggregate local and foreign demand for goods and services and institutional factors such as the presence of strong labor unions and labor legislation also determine the underlying high rate of unemployment rate. In addition to open unemployment, there is evidence of a high level of ‘disguised unemployment’ in the form of ‘discouraged workers’ who are not in employment and not actively looking for work, even though they would like to work. The high rates of ‘open’ and ‘disguised’ unemployment in Benue State on crime  represent a serious waste of human resources, the explanation for poverty traps, high level of income inequality and slow growth of gross domestic output and therefore becomes a problem which requires thorough examination. In other words, the extent, the dimension, the persistence of the unemployment crises and its macroeconomic implications call for further research in the area.
The persistently high unemployment rate is a cause of concern to Congress for a variety of reasons.

1.3.    Objective of the Study
It is presume that unemployment have impacted so much on crime in Benue State Metropolis. Researchers in this area have shown that unemployment and crime have impacted on Benue State Metropolis. The main objective is to access the impact of unemployment on crime in Benue State metropolis.
The study is specific at achieving the following objectives:
i.                   Examine impact of unemployment on crime in Benue State Metropolis.
ii.                 Determine whether or not unemployment has contributed to increase in crime in Benue State metropolis.
iii.              Examine and investigate the factors that are responsible for the state of unemployment on crime in Benue State metropolis.

1.4.    Research Question
          Has unemployment impacted on crime in Benue State metropolis?
          Has unemployment contributed towards the increase in crime in Benue State metropolis?
          Are they factors responsible for the level of unemployment on crime in Benue State metropolis?

1.5     Research Hypothesis
In quest for the impact of unemployment on crime in Benue State metropolis, the following hypothesis will be tasted using appropriate statistical, techniques.
Ho:    unemployment has not impacted on crime in Benue State metropolis.
H1:    Unemployment has impacted on crime in Benue State metropolis.

1.6     Significance of the Study
          This dissertation is justified because, it will first of all contribute to the existing literature on the impact of unemployment on crime in Benue State metropolis.
          It will serve as a guide for government and security agencies towards finding a lasting solution on the impact of unemployment on crime in Benue State metropolis. It will also serve as a reference to do more research in this area of study. 

1.7     Scope of the Study
          our attention will be focused on the three (3) major towns in Benue State which include Makurdi, Gboko and Otukpo but specifically aimed at ascertaining the extent to which unemployment have impacted on crime on Benue State metropolis.

1.8     Limitation of the Study
          The impact of unemployment on crime is a national problem and multidimensional, but due to time and resource constraint, the study will be narrowed to three major towns in Benue State.

















CHAPTER TWO
LITERATURE REVIEW

2.1 Theoretical Framework
          Generally, unemployment constitutes a part of the overall crime in Benue State Metropolis. Hence, the theory of unemployment is derived from a general theory of unemployment on crime. However, due strategies are character of unemployment, specific programmes and strategies are usually designed to address the problem of unemployment on crimes.
          The concept of unemployment need not be over emphasis as it a major contributor to crime and national security in Benue State. Aiyedogbon O.John (2012), defined as the proportion of labour force that was available for work but did not work in the week preceding the survey period for at least 39 hours. The stress is on how to reduce unemployment that will led to reduction on crime in Benue State. But the famous food basket of the nation that is suppose to provide jobs for its youths through the available agricultural products has turn a place of joblessness.  
          If Benue state pursue and deal with the issue of unemployment and crime, the state will be among the top performing economy in the country and invariably become attractive to foreign investors. Thus the overall emphasis depend on the population of Benue State. The increasing population is furthering increasing the rate on unemployment in the state, there by impacting negatively on the crime rate as the people strive to survive. Benue State have tried in some ways towards creating enabling environment where the youth could find them selves a means of livelihood in form of self employment. Among others includes the following:
i.                   The training and giving of grants to youth to start up business
ii.                 The introduction of taxi as a means of curbing unemployment rate.
iii.              The introduction of tax board (BIRS)
iv.              The rehabilitation of fruit juice industry to create job for the youth
The programmes so far cannot cover a wider segment of the Benue population. The programmes are not set up with the intention of covering the entire population of Benue State but just a few related to the ruling power.
          The ideological conception of the impact of unemployment on crime fits the theoretical framework developed by World Bank, (1998:63) as contained in the International Labour Organization (ILO) “defines the unemployed as numbers of the economically active population who are without work but available for and seeking work, including people who have lost their jobs and those who have voluntarily left work . Examples include housewives, full time students, invalids, those below the legal age for work, old and retired persons”. However, the application of this definition across states has been faulted, especially for the purpose of comparison and policy formulation, as states characteristics are not the same in their commitment to resolving unemployment problems (Akintoye, 2008). Example is Imo state with a relative low level of unemployment with less crime rate as compare with Benue State. According to Douglason and Gbosi, (2006). The availability of housewives who possess the ability, skill and willingness to work, the definition of the age bracket all stand as limitations to the definition by ILO.  The unemployment rate is a percentage of the total number of persons available for employment at any time. This research will focus on the impact of unemployment on crime on Benue State. Unemployment has been categorized as one of the serious impediments to growth and social progress. Raheem, (1993). State that, Apart from representing a colossal waste of a Benue State manpower resources, it generates welfare loss in terms of lower output thereby leading to lower income and well-being. Unemployment is a very serious issue in Africa (Rama, 1998) and particularly in Nigeria (Umo, 1996). The need to avert the negative effects of unemployment on poverty has made the tackling of unemployment problems to feature very prominently in the development objectives of many developing states like Benue State.
          According to Briggs (1973), unemployment is defined as the difference between the number of labour employed at present wage levels and working conditions and the amount of labour not hired at these levels. However, Gbosi (1997), has defined unemployment as a situation in which people who are willing to work at the available wage rate are unable to find jobs. Here emphasis is placed on willingness of the people. Therefore, people who are not actively seeking paid employment should not be counted as part of the unemployed labour force. If we do so, we may be overestimating the official rate of unemployment. Within the Nigerian context, unemployment rate is defined as the percentage of persons among the labour force (15 – 65 years) excluding students and those medically unfit, available for work but did not work (Central Bank of Nigeria, 1993).
Today, unemployment has been identified as one of Benue State major socio-economic problems. In Benue State, as in many other developing States, unemployment figures put forward by government officials are downwardly biased due to political and selfish reasons. If the official unemployment rate is accepted, the problem of underemployment still persists in many sectors of the economy. According to Ojo (1997), underemployment simply refers to underutilized workers whose productive capacity is below the reasonable value and potential. Specifically, it is a measure of the degree in which people’s gainful activities fail to make the maximum use of their productive capacity. Unemployment also refers to less than full employment of the labour force. It also means employment less than full time or inadequate employment in various sectors of an economy. The problem of underemployment is an extension of unemployment.

2.2 Literature Review
          The quest for the impact of unemployment on crime in Benue State metropolis has been preoccupation of both academic and policy makers.  In this section therefore, an attempt is made to review, explain, analyze and interpret the various works written by the aforementioned classes of the people in respect of our   subject of study. Various findings were made based on the research methodology used, the population, sample size and the constraint of carrying out the research.
          According to TAIRU BELLO (2003). Unemployment refers to the duration an individual state idle without been productive over a given period of time. His research Having diagnosed the nature of this episode in this sub - region, the study unfolds a number of factors that account for this phenomenon and of course the great threat it poses to the economies involved. An assessment of the past and the present anti – unemployment policy measures in Nigeria was made and the results show that a number of economic and non – economic factors inhibit their performance. In view of this, the paper offered some policy recommendations of which the need for sustainable economic growth that can be achieved through the institutionalization of true federalism and resource ownership, the restructuring of the educational system and the provision of enabling environment for investment friendliness were given the topmost priority.   
          Adawo et al (2012). Research into the unresolvable unemployment in Nigeria. He state that unemployment in Nigeria is alarming. Statistical tools were used to measure the level of unemployment which measurement by statistical authorities does not pose red alert. It has been discovered that the observed situation of unemployment on crime is more serious than what official statistics want us to believe. The causes of unemployment in Nigeria include poor infrastructure, insecurity and non-diversification of the economy and poor educational system that does not readily produce employable graduates. Among other things he recommended that governments at all levels should partner with the private sector and diversify the economy in order to create jobs.
In the words of Adebayo (1999) and Egbuna, (2001) unemployment leads to psychological problems of frustration, depression, hostility and criminal behaviors. He tries to view people ways of reasoning as regarding their standard of living. As the cost of living is high and the standard of living is low, for the sake of survival people engage in crimes due to unemployment.  In corroborating this opinion, Echebiri (2005) stressed that youth unemployment primarily encourages the development of street youths and area boys who were denied of legitimate means of livelihood to grow up in a culture that encourages criminal behaviors. Crime resulting from unemployment can be limited if the youths of Benue state are giving jobs or avenues is been created for them to have some thing doing. This will increase the revenue of the state and increase the economic growth.
 According to Chigunta, (2002).  Unemployed  youths survive by engaging in various activities such as petty trading, casual work, borrowing, stealing, pick pocketing, prostitution, touting and other illegal activities. Some have become
drunkards and others are on drugs such as cocaine and Indian-hemp. Bennel (2000) in line with Chigunta, (2002). argued that urban society is becoming increasingly criminalized, especially with the proliferation of youth gangs. Several studies including Igbinovia, (1988) have shown that majority of prison inmates are youth aged 30 years and below who have no jobs. Also, delinquency, crime and
drug abuse are on the increase among youths of Benue state as a result of the unemployment.
Akinboyo  (1987); and Raheem (1993). Unemployment has also been categorized as one of the serious impediments to economic growth and progress. Apart from primarily encouraging the development of street youths and area boys who were denied of legitimate means of livelihood to grow up in a culture that encourages criminal behaviors; it represents a colossal waste of a country's manpower resources, and generates welfare loss in terms of lower output thereby leading to lower income and poor well-being. Vandemoortele,(1991), Rama, (1998) Oladeji, (1994) and Umo (1996) found that unemployment has serious negative implications on the economies of Africa,  Nigeria and Benue in particularly. He see growth rate of output is a function of the growth rate of unemployment.
There has been so many empirical studies regarding  the relationship between unemployment and crime  in both developing and developed economies. Basu et. al.,(2006) and others, finds that there is a negative correlation of employment and productivity growth on employment via hours worked by using a VAR methodology. His research was aimed to focus on the nexus of productivity growth and unemployment as it may be. In the same light, Gordon (1997) in his study pinpointed that there is a link between productivity and unemployment which presumes a time frame especially when it is looked at from the long run perspective. This may trigger crime if the level of unemployment is not dealt with over a long run.
Sequel to the above, Tobin (1993) state that there is a short run technology shocks which may induce a negative effect on employment and positive effect on unemployment which was addressed by Francis and Ramey (2005). Despite the foregoing, it would not be out of context for one to agree that productivity shocks may lead to a persistent employment effect thereby reducing unemployment in the long run there by reducing crime.
According Adam (2002; Lee, 2000; Schnabel, 2002) a drop in the unemployment rate is expectedly required to trigger an increase in the labour participation rate, via hours worked and productivity thereby resulting to an increase in output at large there by cubing crime rate.
On the contrary, Uhlig (2006) pointed out that all the correlation between productivity growth and unemployment are positive, less volatile and more persistent such that this correlation varies with the span of time under consideration. Thereby, buttressing that technical progress and growth in gross domestic production (GDP) are certainly not causing unemployment and over most periods creates and kept employment.  Coher, Dickers and Pogen (2001) look at it from a different direction, suggest that the new economy features production processes that put a greater emphasis on general rather than specific skills which as a result make workers to become more interchangeable in order to enhance easy to match workers and jobs which in turn reduce unemployment that may lead to crime. In the same vein, Grubb, Jackman and Layard (1982) and Braun (1984) Gives a vivid explanation that the link between unemployment and productivity based on what he describe as “wage aspirations” which adjust slowly to shift in productivity growth. Though, the concept of wage aspirations is a departure from the neoclassical theory of the labour market, but it builds on research by psychologists and industries relations specialists. However, this form a basis for which the level of unemployment can be tackled there by reducing the crime rate to the barest minimum.

2.3 Empirical Review
As a matter of fact, many researchers have attempted to investigate the relatinship between unemployment and crime in both developing and developed economies. For instance, Amassoma, Ditimi et al (2013) view unemployment as a uncontrollable increase in the population of the people with less jobs opportunity over a long period of time. He tries to examined the relationship between unemployment rate and productivity using a period of 1986 to 2010. His study utilized co-integration and error correction model approach. Although the unit root tests showed that the variables were integrated of different orders, the Johansen co-integration result showed that the variables were co-integrated. The regression estimate based on the short run and long run models showed that unemployment rate has an insignificant influence on productivity growth over the study period. Based on his findings, he recommended that government  need to take urgent steps against the rising unemployment rate, because unemployment is a major impediment to social progress and results in waste of trained manpower as well increase the crime rate.
Bakare A. S (2012), View unemployment as a transition problem caused by some elite who do not have the masses at heart. Unemployment on crime is one of the most pressing challenges facing Benue State and policy makers. He  however examined the implication of  unemployment crisis on economic growth. Standard econometric method, Ordinary Least Square multiple regression, (OLS) to determine the relationship between urban unemployment crisis and economic growth. The results of his finding show that the past values of unemployment crisis could be used to predict the future behaviour of economic growth. He suggested the need for the government to embark on direct measures capable of creating jobs through industrialization and mechanization of agriculture. It also recommended that programmes of integrated vocational training and re-orientation of economic activity towards self employment and self-reliance should be encouraged in order to minimize the unemployment crisis.
            Aiyedogbon O. John  (2012) in the poverty and youth Unemployment in Nigeria using  poverty as a function of unemployment, agricultural, manufacturing and services contributions to real GDP, population and inflation rate in which the growth rate of the variables were modeled. “The results of the study showed that unemployment, agricultural and services contributions to real GDP as well as population have positive determining influence on poverty level in Nigeria with only agricultural sector statistically insignificant. On the other hand, manufacturing sector contribution to real GDP and inflation rate exhibited negative relationship on poverty level in Nigeria with only manufacturing sector appearing significant. The study recommended among other things, that holistic effort should be made by governments at all levels to create jobs and arrest unemployment”.
Muhammad, et al., (2011) research into the role of unemployment on the making of the Nigerian Gross Domestic Product (GDP) for a period of nine years (2000 - 2008). His data was analyzed using regression analysis, findings showed that unemployment has enormous effects on crime (over 65 percent) on the making of the Nigerian GDP and there exist an inverse relationship between the model (unemployment) and the GDP - increase in the model leads to decrease on the GDP and vice versa.
Bakare (2010) examines the determinants of the urban unemployment in Nigeria. Using the level of unemployment and demand for labour, supply of labour, population, inflation, capacity utilization, gross capital formation and nominal wage rate as the variables. “Using time series secondary data and parsimonious error correction mechanism, the study found that the rising nominal wages and the accelerated growth of population which affected the supply side through a high and rapid increase in labour force relative to the absorptive capacity of the economy appear to be the main determinant of high unemployment in Nigeria”.
Ibrahim and Umar, (2008) assess the determinants of poverty as well the poverty coping strategies among farming households in Nasarawa State, Nigeria. The study used simple random sampling to select 150 farming households and used Costs of Calorie method and Discriminant Analysis to determine the incidence of poverty as well as its determinants respectively. The sampled households was found to be high and the major determinants of poverty include household size, number of income sources of the household head, number of household members employed outside agriculture and the number of literate adult males and females in the household. “The major poverty coping strategies include skipping of meals, reduction in the quantity of meals served and engaging in wage labour. The study recommends that the farming households should be effectively involved in the formulation of strategies for imparting knowledge on family planning to the farming households”.
Sanda (2006) uses a sample of 360 firms in Kano to examine whether or not, in comparison to large firms, small firms are relatively better at creation of employment opportunities. The results were positive in that small firms were found to be relatively better in terms of employment opportunities, and the conclusion they derived was that a policy that gives special preference to small firms is justified.
2.4 TYPES OF UNEMPLOYMENT
The main aim in this section is to review the various types of unemployment that that could be leading to crime in both developed and developing economies. Thus, in order to establish the type of unemployment that exists in an economy, economists have classified unemployment as “seasonal”, “cyclical” or “technological” to know how they have impacted on the lives of the people. Each types of unemployment is discussed below.
i.                   Seasonal Unemployment
Seasonal unemployment is a type of unemployment that occurs as a result of seasonal fluctuations in the economy. According Elrenburg and Smith (1982) observed, the demand for agricultural workers usually declines after the planting season and remains low until the harvesting season. In the same vein, the demand for construction workers usually falls during the rainy season and picks up during the dry season. For example, the author made a trip to Spibat Nigeria Limited, a major French construction company that built the second Port Harcourt Refinery at Alesa Eleme, near Port Harcourt in July 1987. As at the time he made the trip most of the construction workers were laid off. Reason been that, it usually rains heavily in the month of July in Nigeria. But when another trip was made to the company in December of the same year, most of the retrenched workers have been called back. Therefore, seasonal unemployment does not pose a serious threat to the economy but could lead to crime as the period for which these workers have not jobs.
ii.                 Frictional Unemployment
Frictional unemployment is that type of unemployment which occurs when workers spend time searching for new jobs without getting it. For example, a 26 worker in Enugu may leave his present job to Makurdi with the expectation of getting a higher paid job. Unfortunately, when he got to Makurdi, he could not find a job. During this period without a job, he is being described by labour economists as a frictionally unemployed worker who is prone to crime. Factors that could be responsible for frictional unemployment maybe. First, there is imperfect flow of information in the labour market. This is because the labour market is not dynamic as the neo-classical economists contended in the past. Second, it usually takes a longer time for unemployed workers to get in touch with potential employers who may have available job openings in Benue State. Even though the size of the labour market is constant, at every point in time, there are new entrants in the labour market daily. Some of those workers may be searching for employment, while other employed or unemployed individuals will be leaving the labour force. This is more difficult in Benue situation because it is a civil service state. Therefore, one can safely say that the level of frictional unemployment in any Benue State may be determined by the flows of individuals into and out of the labour market and the speed with which these unemployed individuals search for and secure jobs (Gbosi, 1998).
iii.              Structural Unemployment
Structural unemployment occurs when there are some structural changes in the economy such as the band of motor cycle(Okada),Laying off of civil servants. Such structural changes may take the form of a decrease in demand for certain skills or a change in technology of a certain industry or even political incline in nature. Some workers who are structurally unemployed do not have jobs because of lack of industries, or the industry in which they would have loved to work may be decreasing output. Structural unemployment may result because there are individuals who look for jobs in a location that has no industry that can use their skills or because these individuals possess the wrong skills to offer available employers (Solomon, 1980). Experience within the recent past in this country during the past 20 years shows that many teenagers who moved from the rural areas to the urban areas do not possess the requisite skills. One can therefore argue that structural unemployment poses a more serious problem than frictional 17 unemployment that could lead to crime.
Today, Structural unemployment is a serious threat to the Benue economy. Specifically, because of the state’s rising rate of unemployment alarming, there has been mass exodus of people from the rural areas to the urban centres in search of paid employment. As they do not possess the required skills or related job experience, they become structurally unemployed. Even those who have the required skill still find it difficult to secure job in Benue State. A high proportion of these people are usually teenagers. Presumably, most of these teenagers who left the rural areas for the urban centres do not possess the skills, which prospective employers are looking for or it might be they moved to cities that have no industries that can use their skills.
Consequently, they become structurally unemployed. Children of peasant farmers also suffer from structural unemployment not only civil servant children or traders. Many of these youngsters are from poor parents. As a result, some do not possess an adequate education which prospective employers may require or do not even have the relevant work experience. The little job available have been tag with age limit just to curb out people from getting the job and further creating unemployment. A good description of structural unemployment has been summarized by Shiller (1982) in this way.
“Structural unemployment is analogous to a musical chair’s game which there are enough chairs for everyone but some of them are too small to sit on”.
iv.              Cyclical Unemployment
This type of unemployment occurs when there is an inadequate level of aggregate demand. Benue State is no exceptional as the demand for labour is low with a very high level aggregate of graduate. In every market economy, producers produce in anticipation of demand. For example, it does not make sense for a shoe manufacturer to produce 1,000 pairs of shoes per week when he knows that the demand for his product is not effective. How inadequacy in the level of aggregate demand leads to unemployment is illustrated below
 Shift in Aggregate Demand Function.
  
   P                                      AS
                                                A
P0                                          

P1                                                                   AD0

                                           AD1

                                                  y
                          Y1    y0 
                    (Output,y)

In the above graph, AD represents aggregate demand while AS is aggregate supply. P is the general Price level, while Y represents a nation's total output of goods and services. Assuming that the economy is at full-employment, that is point A, and eventually a recession occurs as it was the case during the Great Depression, the economy’s total demand of goods and services will fall from ADo to AD1. The general price level will fall from Po to P1. The movement of output from yo to y1 is what is referred to as demand deficient unemployment. This type of unemployment was what actually worried John Magnard Keynes during his time. Some economists have argued that another name for deficient demand unemployment is when there are lack of job vacancies. Therefore, one can argue that the dramatic increase in the rate of unemployment during the Great Depression was neither due to frictional unemployment nor structural unemployment but rather to insufficient aggregate demand (Gbosi, 1998).
v.                  Technological Unemployment
This type of unemployment occurs when people are being replaced with machines. The argument is that as soon as a country becomes technologically advanced, there is always the tendency to use more machines in the production of goods and services. Thus, a worker who operates one machine day after day eventually becomes specialized in a particular job. There is however, a greater risk of unemployment in such a situation. This is because the affected worker may find it difficult to change to something else especially when he is old. Nigeria is not yet technologically advanced. Therefore, technological unemployment does not pose a serious threat to our economy.


2.5 CAUSES OF UNEMPLOYMENT
 Every problem have a cause, some of the causes of unemployment have been traced to the following:
1. LACK OF CAPITAL :- The less developing countries are facing the problem of capital shortage. While for the development of any country, there is a need of a huge amount of capital. When new projects , buildings and factories are constructed a large number of people are engaged in these project. So lack of capital is the major cause of unemployment.
2. OVER POPULATION :- In the less developing countries the rate of population growth is 3% per Annam while the natural resources are limited and they cannot meet the increasing demand of the population.
3. SEASONAL VARIATIONS :- There are many industries which produce the goods seasonally like ice factory. These work only month and remain close in the remaining period. So a large number of people who are engaged with these industries become unemployed. Due to inventions, new goods are replacing the old commodities. So the people who are engaged with old industries are unemployed.
4. LACK OF EFFECTIVE DEMAND :- According to keynes when aggregate supply increases than the aggregate demand unemployment prevails. So he stresses that the rate of consumption may not fall.
5. LACK OF SKILL :- In the less developing countries, majority the people is uneducated and they have no any skill about any particular job. So they can not get the job.
6. POOR PERFORMANCE OF AGRICULTURE SECTOR :- Under developed countries depends upon the agriculture sector and production of agriculture depends upon nature. Second problem is this that there is subdivision of land. Farmers have very small holdings, neither they can sell it nor they can cultivate it.
7. TRADE CYCLE :- Some time due to crises unemployment prevails. Because in the period of depression, prices, profits, production and rate of employment falls.

2.6 CURE OR REMEDIES TO UNEMPLOYMENT IN BENUE STATE
It is one thing to diagnose a problem, but it is another thing to provide solution to it. Some of the suggested remedies to the prevailing effects of unemployment on crime include the following:
1. INCREASE IN CAPITAL FORMATION:- Government should establish the labour intensive industries to increase the rate of employment.
2. INCENTIVE FOR PRIVATE SECTOR:- Government should provide the liberal concessions bad tax holidays to the private investors to increase the rate of employment.
3. ESTABLISHMENT OF SMALL SCALE INDUSTRY:- In the rural areas small scale industry should be established to remove the disguised unemployment.
4. TECHNICAL TRAINING CENTERS:- Technical and commercial centers should be established to provide training and skill to the public. It will be very useful in curtailing the unemployment rate in Benue State.
5. CONTROL ON POPULATION :- There should be an effective check on the population growth. Family planning program should be introduced and population should be reduced according the size of natural resources.
6. INCREASE IN EFFECTIVE DEMAND :- Government should increase the rate of investment by establishing the various industries to increase the rate of employment.
7. EMPLOYMENT EXCHANGE OFFICES :- The offices should be established to provide the proper information's about the employment to the public.

8. MONETARY AND FISCAL POLICY :- Government should frame the above policies in such a manner that maximum chances of employment may be provided to the public.

No comments:

Post a Comment